Rotork’s posted results today, stating that revenue increased 8.3% to £695.7m. Adjusted operating profit and basic EPS grew 12.2% and 64.1%, respectively. Net cash stood at £43.6m at year-end.
The Growth Acceleration Programme continued to progress at the same pace as in H2, with a 160bps improvement in working capital to sales. In addition, there is a centralised new product development structure.
Revenue and adjusted operating profits per head also increased 7.5% and 11.3%, respectively. Order intake increased 2.3%, whereas FY dividend stood at 5.90p (FY17: 5.40p). And adjusted operating margin expanded to 21.0%, while ROCE increased 430bps to 29.2%. Cash conversion was 110.7%.
Kevin Hostetler, Rotork’s CEO, commented: “Following double-digit OCC revenue growth in 2018, and mindful of macroeconomic uncertainty, we are planning for slower growth in 2019. Based on our current assessment of project phasing, we expect to deliver modest sales growth on an OCC basis in 2019, with lower year-on-year sales in H1, reflecting the strong comparator period. Overall, we expect full-year margins to show progress on 2018.”